Public Pensions & California Insolvency #570-571
August 27, 2010One Comment
OC Supervisor John Moorlach discusses the retroactive pension benefit increases for Sheriff’s Deputies created an overnight massive debt for Orange County who had gone bankrupt in 1994 and now is in peril again. He cites that CALPERS the State Employee Pension agency is comprised of 2/3rds public employee union representatives. Instead of investing in bonds and equities, they opted for higher benefits by supporting the retroactive raise to 3 percent at age 50 retirement age. The County has filed a lawsuit that Superior Court Judge wanted rid of, so an Appeal was filed and it is expected that the State Supreme Court will eventually address.
Show 570, Segment #1:
Orange County VOTERS APPROVED MEASURE “J” requiring voter approval for increases to public employee benefits. Supervisor John Moorlach tells Full Disclosure Network that because public employee unions have huge campaign war chests from union dues, the Democrat Party has become the “labor party” that is running the legislature in Sacramento. Cities like Maywood are no longer hiring, but turning to contract employees and many small cities are looking to merge to share expenses. All this caused by the pensions and benefit crisis.
Show 570, Segment #2:
PUBLIC EMPLOYEE UNION CONCESSIONS: Orange County Supervisor John Moorlach tells Full Disclosure Network the economic crisis is providing an opportunity….that being “it is time to confront the public employee unions to roll back the pensions” . He says union leadership seems earnestly willing to protect jobs with concessions to avoid bankruptcy.
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